Leveraged trading is to invest several times the original amount with a small amount of money in order to obtain a return or loss that is several times the fluctuation of the investment target.

A contract is an agreement that the buyer agrees to receive assets at a specific price after a specific period of time and the seller agrees to deliver assets at a specific price after a specific period of time.

2, the operation method

Leverage is to borrow money from the platform and over-allocate assets in the spot market. The operation process will include borrowing interest rate+transaction interest rate.

The contract is a delivery contract, that is to say, you can choose the leverage ratio of the product itself before trading.

3. Rules

Leveraged trading is that investors use their own funds as a guarantee to amplify the financing provided by banks or brokers for foreign exchange trading, that is, to amplify the trading funds of investors.

Futures contract is a standardized contract designed by the exchange and approved by the national regulatory agency.

Extended data

The international financing multiple or leverage ratio is between 20 times and 400 times, and the standard contract in the foreign exchange market is 654.38+10,000 yuan per lot (referring to the base currency, that is, the previous currency of the currency pair).

If the leverage ratio provided by the brokerage firm is 20 times, then a deposit of 5,000 yuan is required for the first hand (if the trading currency is different from the account deposit currency, it needs to be converted).

The reason why banks or securities firms dare to provide a larger financing ratio is because the daily average fluctuation of the foreign exchange market is very small, only about 1%, and the foreign exchange market is a continuous transaction. Coupled with perfect technical means, banks or brokers can completely resist market fluctuations with less margin from investors without taking risks themselves.

Foreign exchange margin is a spot transaction, which has some characteristics of futures trading, such as buying and selling contracts, providing financing, etc., but its position can be held for a long time until voluntary or compulsory liquidation.